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Below the Quote on GST 2.0 by Mahendra Patil, Founder and Managing Partner at MP Financial Advisory

"The introduction of new personal tax slabs in the last Union Budget, the RBI’s cumulative 100 bps repo rate reduction this year, and now the rationalisation of GST into two broad slabs of 5% and 18% together represent a powerful, three-pronged policy push. By lowering both direct and indirect tax burdens, the government has eased household financial stress and expanded disposable incomes. With inflation steady at ~4.5%, oil prices stable in the $70–$ 85 range, and logistics costs now close to global benchmarks, these savings have a far greater chance of translating into real grassroots consumption, particularly in rural areas, FMCG, and low-ticket durables. On the supply side, reduced borrowing costs and improved liquidity will enable MSMEs to manage their working capital more effectively, expand their capacity, and create more jobs. Collectively, these measures could soften core inflation while lifting GDP growth over the next 12 months. More importantly, they signal confidence in India’s resilience and reinforce a virtuous cycle of lower costs, higher consumption, and sustained growth momentum."

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